Goldman Sachs maintains its bullish outlook for gold, predicting that the gold price will reach $5,400 per ounce by the end of 2026

Gate News message: On March 31, Goldman Sachs released a report maintaining a bullish outlook on gold, predicting that gold will resume its uptrend by the end of 2026. Analysts Lina Thomas and Daan Struyven said that gold’s medium-term outlook remains solid, supported by continued gold purchases by central banks and the expectation that the U.S. will have two more rate cuts this year, which could push the gold price to $5,400 per ounce. The report noted that in the short term, the gold price still faces tactical downside risk; if energy supply shocks further worsen, gold could fall to $3,800 per ounce. Even so, if the Iran war leads countries to accelerate selling off traditional Western assets and diversify their allocations, gold’s upside potential remains substantial. The report also mentioned that concerns about some central banks possibly selling gold to support their domestic currencies are unlikely to materialize; Gulf states are more inclined to intervene by reducing holdings of U.S. Treasuries (U.S. government bonds). Under the assumption that there is no additional investment from the private sector, analysts expect medium-term price volatility to ease, which would allow the official sector’s pace of gold purchases to pick up again, averaging about 60 tons of gold purchased per month.